US EditionChina's DeepSeek claims theoretical cost-profit ratio of 545% per day
- DeepSeek announced that it could achieve a theoretical profit margin of 545% based on its V3 and R1 models’ cost of inferencing, as reported on X.
- Despite the high profit margin mentioned, DeepSeek disclosed that its actual revenues are lower due to limited monetization and discounts offered during off-peak hours.
- DeepSeek has shared key innovations and data about its operations, differing from the proprietary practices of competitors like OpenAI, according to the company.
- Investors are questioning the feasibility of profitability for AI start-ups, sparking debate about their business models and returns on investment.
35 Articles
35 Articles
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New Delhi: The rapid growth of Chinese AI company DeepSeek has shaken global tech giants and billionaires. In January, the world's top billionaires saw their collective wealth surge by USD 314 billion, only to experience a sharp decline shortly after, due to the AI startup's mass
DeepSeek says it has theoretical profit margins of 545%: an outlier in the world of AI
Chinese artificial intelligence (AI) startup DeepSeek recently stated that its AI models can be highly profitable - albeit with some caveats. The company boasted that its online services have...
China's DeepSeek Claims Theoretical Cost-Profit Ratio of 545% Per Day
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China’s DeepSeek claims theoretical cost-profit ratio of 545% per day
DeepSeek said in a GitHub post published on Saturday that assuming the cost of renting one H800 chip is $2 per hour, the total daily inference cost for its V3 and R1 models is $87,072. In contrast, the theoretical daily revenue generated by these models is $562,027, leading to a cost-profit ratio of 545%.
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